Business Context and Reporting Period
Company: Companhia de Saneamento Básico do Estado de São Paulo - SABESP
Filing Type: Form 6-K (Report of Foreign Issuer)
Date: June 27, 2016
Reporting Period: This filing serves as a Notice to the Market regarding corporate governance changes effective for the second quarter of 2016. It does not contain financial results for a specific period.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This document is a regulatory notice regarding an auditor change and does not include financial statements or performance metrics.
Material Changes
- Auditor Replacement: SABESP has contracted KPMG Auditores Independentes to replace Deloitte Touche Tohmatsu Auditores Independentes as its independent external auditor.
- Effective Date: KPMG's engagement begins with the review of the Quarterly Information (ITRs) for the second quarter of 2016.
- Reason for Change: The contract with Deloitte expired after a 60-month term, in compliance with applicable Brazilian legislation (clause 57 of Law 8666/93).
- Consent: Deloitte has provided consent regarding the justification for the change.
Guidance, Outlook, and Risks
Management Commentary: The filing includes a standard Forward-Looking Statements disclaimer. It notes that statements regarding future economic circumstances, industry conditions, dividends, and capital expenditure plans are based on current management views and estimates.
Risks and Uncertainties: The document states there is no guarantee that expected events or trends will occur. Actual results may differ materially due to changes in assumptions regarding general economic conditions, market conditions, industry conditions, and operating factors.
Investor Verification Checklist
- Verify the official appointment of KPMG as the new external auditor in subsequent regulatory filings.
- Review the upcoming Second Quarter 2016 Quarterly Information (ITR) for the first financial review conducted by KPMG.
- Confirm that the transition from Deloitte to KPMG was executed without disruption to the audit timeline.
- Monitor future filings for any restatements or adjustments resulting from the change in audit firm.